Yen Climbs as Markets React to BoJ Ueda's Talk and China's Import Contraction
| Action Insight Daily Report 12-7-23 |
Yen Climbs as Markets React to BoJ Ueda's Talk and China's Import Contraction |
Yen and Dollar strengthened notably in Asian session today, amid a backdrop of risk aversion that's reflected in the continued downturn in Hong Kong's stock market and softness in Japan. A key factor impacting market sentiment is the unexpected slump in China's imports, including the decline in crude oil imports – the first such annual decrease since April. This drop is a significant indicator of China's waning domestic demand, raising alarm bells about the health of one of the world's largest economies. At the same time, Yen received additional boost following remarks by BoJ Governor Kazuo Ueda in parliament. While Ueda maintained BoJ's dovish position and emphasized the necessity of continuing ultra-loose monetary policy, his mere discussion about exiting negative interest rates caught the attention of traders. This mention, despite not indicating an immediate policy shift, has resonated within the financial markets, leading to a sharp rise in 10-year JGB yield , which surpassed 0.75% mark.... |
GBP/JPY Daily Outlook Daily Pivots: (S1) 184.74; (P) 185.27; (R1) 185.56; More... GBP/JPY's fall from 188.63 accelerates lower today and breaks through 184.44 support. Current development argues that a medium term is in place on bearish divergence condition in D MACD. Fall from 188.63 is likely corrective whole rise from 148.93. Intraday bias is now on the downside for 23.6% retracement of 148.93 to 188.63 at 173.46 next. On the upside, above 185.78 minor resistance will turn intraday bias neutral and bring consolidations first. But risk will now stay on the downside as long as 188.63 resistance holds. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:30 | AUD | Trade Balance (AUD) Oct | 7.13B | 7.45B | 6.79B | 6.18B | | 03:00 | CNY | Trade Balance (USD) Nov | 68.4B | 58.1B | 56.5B | | 05:00 | JPY | Leading Economic Index Oct P | 108.7 | 108.2 | 108.2 | 108.9 | | 07:00 | EUR | Germany Industrial Production M/M Oct | -0.20% | -1.40% | | 07:45 | EUR | France Trade Balance (EUR) Oct | -8.5B | -8.9B | | 08:00 | CHF | Foreign Currency Reserves (CHF) Nov | 658B | | 09:00 | EUR | Italy Industrial Output M/M Oct | -0.60% | 0.00% | | 10:00 | EUR | Italy Retail Sales M/M Oct | 0.10% | -0.30% | | 10:00 | EUR | Eurozone GDP Q/Q Q3 | -0.10% | -0.10% | | 10:00 | EUR | Eurozone Employment Change Q/Q Q3 F | 0.30% | 0.30% | | 12:30 | USD | Challenger Job Cuts Nov | 8.80% | | 13:30 | USD | Initial Jobless Claims (Dec 1) | 226K | 218K | | 13:30 | CAD | Building Permits M/M Oct | 1.10% | -6.50% | | 15:00 | USD | Wholesale Inventories Oct F | -0.20% | -0.20% | | 15:30 | USD | Natural Gas Storage | 8.3B | 10B |
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